A. Schulman, Inc., a North America-headquartered supplier of high-performance plastic compounds and resins, has taken stringent operational measures in light of the global economic slowdown to tame costs in North America and Europe.
In North America Engineered Plastics business, the Company's production capacity for will be reduced by 50% and its employee count (both technical and administrative) will be reduced by 74. This will be carried out by idling of two manufacturing lines and a permanent close down of one line at the plant in Bellevue, Ohio while idling one line and reduce shifts at its plant in Nashville, Tennessee.
In Europe (which accounts for 75% sales), the Company will reduce its current capacity by 7% to 10% and tame 80 employees from a total of 1,500 in its European operations, including Asia.
According to a company statement, the above measures are likely to create approximately US$14 mln to US$18 mln in after tax savings from both its North American and European businesses. The Company has reduced its net income projection for fiscal year ending August 31, 2009 to US$30 mln to US$35 mln from the previously announced projection in excess of last year's US$37.1 mln.